PSU, railway & OMC stocks: How to trade these sectors? SBI Securities' Sunny Agrawal explains

Sunny Agrawal, Deputy Vice-President and Head of Fundamental Equity Research at SBI Securities, said shares of state-owned companies -- including rail PSUs -- have already seen a great run. So, one can consider partial profit booking in the mentioned sectors, Agrawal told Business Today TV on Monday.

"There could be an opportunity in the railway wagon sector. Companies like Texmaco Rail & Engineering, Jupiter Wagons and Titagarh Rail Systems Ltd will be witnessing strong earnings growth on the back of project execution in the next 12-18 months. Investors should opt for 'Buy-on-dip' strategy," the market expert stated.

From the oil and gas space, Agrawal liked Indian Oil Corporation Ltd, Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL). "Some of part capital can be deployed in the sector," he added.

Meanwhile, Indian equity benchmarks staged surged to lifetime highs today, led by gains across all sectors. Broader market (mid- and small-cap) shares were also positive.

All 16 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty PSU Bank, Nifty Oil & Gas, Nifty Financial Services and Nifty Metal were outperforming the NSE platform by rising as much as 6.38 per cent, 5.63 per cent, 3.45 per cent and 3.44 per cent, respectively.

On the stock-specific front, Adani Ports was the top gainer in the Nifty pack as the stock jumped 11.03 per cent to trade at Rs 1,595.95. Power Grid, BPCL, NTPC and Adani Enterprises gained up to 10.65 per cent.

In contrast, Eicher Motors, HDFC Life, LTIMindtree, Britannia and Asian Paints were among the top laggards.

The overall market breadth was positive as 2,801 shares were advancing while 842 were declining on BSE.

Foreign institutional investors (FIIs) bought shares worth Rs 1,613.24 crore on a net basis during the previous session and domestic institutional investors (DIIs) purchased Rs 2,114.17 crore of stocks, exchange data showed.